CDIC differential premiums update

Summary#

This is a proposed technical update to the Canada Deposit Insurance Corporation Differential Premiums By-law by the Canada Deposit Insurance Corporation (CDIC). It mostly changes wording and internal cross-references in the by-law so they match the current filing names and schedule numbers used by the Office of the Superintendent of Financial Institutions (OSFI). The notice was published October 21, 2023 and there is a 30 days comment period; the changes are intended to apply to the 2024 premium year.

What it does#

• Updates several document and line-item names that Member Institutions must file with CDIC. For example:
  • Renames the required statement from the old title to the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, and replaces the Return of Impaired Assets with the Return of Allowances for Expected Credit Losses.
• Replaces many cross-references to OSFI reporting schedules and table numbers so the by-law points to the current schedule numbers on OSFI’s capital and liquidity forms (BCAR, LRR and related schedules).
• Changes one label in the reporting form from an “All in” target to a Supervisory Target Tier 1 Capital Ratio to match regulator terminology.
• Makes these corrections across Schedule 2 and Schedule 3 of the by-law (reporting form and rating/measure tables).
• States the amendments are technical only, will not change how premiums are calculated, and are intended to take effect for the 2024 premium year.

Who's affected#

• CDIC member institutions — mainly banks and other deposit-taking institutions that file the capital and risk reports CDIC uses to set differential premiums.
• Office of the Superintendent of Financial Institutions (OSFI) — because the changes align CDIC references with OSFI’s current form names and schedules.
• Depositors and the general public are not directly changed, but may benefit indirectly if CDIC receives clearer, more consistent data.

Why it matters#

• Better alignment between CDIC’s by-law and OSFI’s reporting forms should reduce confusion about what figures and tables institutions must provide.
• Clearer references help CDIC get the correct data it needs to classify institutions and set risk-based deposit insurance premiums.
• The change is described as technical only and not intended to add costs or change premium rules.
• This is a proposed amendment (not final). Interested parties had 30 days from publication (October 21, 2023) to comment.